Forum Replies Created
I personally have found the venture into US real estate extremely lucrative and continue to receive a very nice cash flow each month. Several who had me purchase for them are now selling and receiving more than double their money. Haven’t had any complaints.
Judith Ottosen | Outback Realty LLC
Email MeThere are a few Australians who post on this site who are living in the USA and helping others invest in property. Send a few emails out and I am sure you will receive replies.
Judith Ottosen | Outback Realty LLC
Email MeWhen purchasing property it is best to purchase in the name of an LLC to give you some protection. A tenant should never know where the owner of any property lives and should only deal directly with the Proerty Manager. Law suits are rare and most tenants just want to get on with the business of life. Keep your property maintained and there is nothing to sue over. In seven years I’ve only had two occasions when someone has tried to sue and neither were tenants or went past the initial letter.
Judith Ottosen | Outback Realty LLC
Email MeWhat CL1706 said is about it. The second home must be for personal use only and not as an investment. I have a number of banks that will lend for investment purposes but the purchase needs to be in your personal name as your personal finances are used to qualify for the loan. Existing investment properties held in the USA can be used as a source of equity to strengthen your financial position. A year down the track you can transfer to your LLC with no questions asked. It would appear that this may be something Banks are looking at a little more favorably.
Judith Ottosen | Outback Realty LLC
Email MeCath, I have heard that there is a time limit on when the first property must be purchased and the inventory is slim pickings. If you want to invest, speak to any of us here on the forum for guidance. I’ve been in Florida for 7 years now and have learnt many of the pitfalls. I almost always have new clients that have been stuffed around and now need to be bailed out. Don’t become another statistic with high priced courses.
Judith Ottosen | Outback Realty LLC
Email MeAll you need to do is not pay the annual fee. It will eventually become inactive without any hassle on your part.
Judith Ottosen | Outback Realty LLC
Email MeLink worked thanks Peter.
Judith Ottosen | Outback Realty LLC
Email MeI tried to sign up but received an error that Metting7 was an invalid code. In in the USA so maybe I can’t join
Judith Ottosen | Outback Realty LLC
Email MeWhat a great idea Peter. I’m in the same business as you and am also appalled at what some investors have been put through.
Judith Ottosen | Outback Realty LLC
Email MeWe had been in construction all of our married life but were getting to the stage where things had to change as it’s tough on the body. I worked three days a week on the tools as well as doing the office work so am used to being busy. My husband also needed a change. I had the opportunity to go to Florida, came home and told my husband we were selling everything and I was going back to buy houses. He said OK LOL. My first house was purchased from Australia and I near died when I found what I had bought. It was only $26,000 for a 2005 (4 year old) 3X2 concrete block home. It is situated in one of the worst areas of SW Florida but my neighbors were amazing. They looked after me like the Queen and I slept many nights with my door unlocked, just like at home. I just forgot where I was living!! I then purchased 7 more in quick succession, ran out of money but was on a roll. I went back to Australia for a visit and managed to find a bit more cash as well as obtaining my business visa. Came back and bought 3 more homes and sold one. Purchased for $63,000 and sold 2 years later with a profit of $82,000 odd. Sent $60,000 odd back home and made another lovely profit on the exchange rate. I don’t think I’d like to have more than 10 personally as this number can be managed easily when I slow down my other interests here.
In construction we battled forever just missing out of the good times every time but finally through education and a plan we have a very nice old age ahead of us.
Judith Ottosen | Outback Realty LLC
Email MeSection 8 tenants have a variety of vouchers, number of bedrooms, well water, city water, tenant pays, owner pays. They receive a different amount depending on the terms the landlord dictates. A voucher is not always seen by a landlord but it is up to you to make sure the particular rental property is not more than the tenant qualifies for. Sometimes a tenant is allowed to pay a gap and sometimes not. That said, the signed lease has to be forwarded to Section 8 and should be inspected for errors by the case worker. You need to ask a lawyer this question. I would never pay water and electricity for a tenant as you will find their extended family all come over to shower and do the laundry.
Judith Ottosen | Outback Realty LLC
Email MeIs the tenant on a month to month lease or a fixed term? If fixed you cannot insist the tenant leave but some might if you offer them an incentive of some sort. If month to month you would be required to serve the tenant with a notice advising that the property is for sale. Make sure your Realtor serves the notice formally in case you need to do an eviction. If it is renewal of lease time and you want to keep someone in the property there is a document that would require the tenants to leave if required at Closing. Why a tenant would sign one of these forms I do not know but the option is there. Try to arrange several inspections on one day, say a Saturday or whatever other day is most convenient for the tenant. Give the tenants a gift card to Starbucks or something like that so they can go and enjoy a bit of time away and also think you are a good guy.
Judith Ottosen | Outback Realty LLC
Email MeA couple of observations:
Rentometer.com is only good as a guide and can be hundreds of dollars out. One of my properties rents for $1200 a month. Rentometer has it at $888, another is $800 a month but rentometer thinks its worth $600. Years ago rentometer was over estimating so its good to see they are now under as its a better tool to evaluate with. Rents are going up at an incredible rate too.
Trulia is the bane of a Realtors existence. True they do get listings from Realtors who list properties on their MLS. There are many different MLS depending on where you live but Trulia do get a look in at them all. Some of their listings can be years old. This is one of my homes that is not for sale and Trulia have no right to have it listed with three Realtors. Realtors pay for Trulia leads and this is what they do. My tenant’s car is even in the drive way. 108 Kerr Cir Lehigh Acres if the link doesn’t work. A comparable house is on the market for $135,000. If you really want to find out what prices are in a particular area, find a Realtor and have them set you up on their MLS to receive daily emails of new properties on the market. The Realtor does not have to contact you or annoy you with emails. They simply set you up.
Ozzie in Texas. Look to all of the smaller banks. Many Australians who do not even live here can get finance now. Get on the phone and call all the Finance Brokers you can find and ask if they can help you. Go buy a sofa on interest free terms and pay it off in 4 months odd. Get a Toys R Us credit card. You will save on kids toys and build your credit at the same time. Hope you have an SSN or anything you do will be a waste of effort. This is the voice of experience lol. Two years wasted.
Cheers and Happy New Year all
Judith Ottosen | Outback Realty LLC
Email MeThis is unfortunately very true. I have found most Americans spend everything they earn and have “stuff” Eight TV sets is not uncommon. Everyone in the household goes to their room to watch what they want on TV and do not sit together as a family. I hope this is not a trend in Australia too.
Almost all of my tenants are late with rent if there is anything like a car breakdown. There are way more tenants than rentals available in SW Florida
Judith Ottosen | Outback Realty LLC
Email MeFor me, timing was for once right. We sold all of our furniture and everything else that was not screwed down and invested the lot. Am now set up for life and debt free. Own 10 houses in the USA
Judith Ottosen | Outback Realty LLC
Email MeAgree with Nigel on this one. Detroit is a lovely place to invest if you like throwing your cash away. A few of my clients babe property there and none have seen anything to bring home yet and are not likely to. There are issues with poverty, gangs, unemployment and a lack of care on the tenants part to take responsibility to ensure the landlords home is kept in as good a condition as possible ie do not let the kids swing on the doors for one. It is possible to buy well there but you need a super reliable realtor and property manager. In my experience, finding a property manager to help my clients out, was an onerous and almost fruitless task.
Judith Ottosen | Outback Realty LLC
Email MeI was sent a BEA form, completed it the first year then let it go the next due to pressure of work. I’ve never been contacted again. I have clients who filled them out for a couple of years then ignored them and have heard no more. Once they have the general drift of what you are up to, they seem to leave you alone. I think it’s just a way of trying to keep some stats on purchasing trends but it doesn’t seem like they are well funded to follow through with fines if they are ignored. Never ignore the IRS though as they will come after you. Two clients decided they were not going to bother with lodging a return and both have been given a $10,000 fine. Another received a fine that was waived pending further compliance. My Accountant works from home and is very interested in Australian investors. He’s very reasonably priced and my advice would be to find someone small who is willing to educate themselves on what our tax requirements are. Bigger firms can’t always do this.
Judith Ottosen | Outback Realty LLC
Email MeI don’t know where EngeloRumora is but I tried to contact via phone and email and received no response. I had a referral for him!! If you see this please contact me.
You are 100% right Nigel on Florida being a great place to invest. There is development and new construction going on everywhere with employment numbers growing and demand for rentals skyrocketing. It can be lucrative investing in up and coming areas but you have to pick your moment. I think the moment in Detroit is a very long way off yet and from what I hear, rental monies are being paid right back as repairs, property management have simply given up due to being worn down with the type of tenants available, unpaid rent remains unpaid and there appears no end in sight. If you bought in a better area of Detroit then you are probably OK but most were sucked in and are paying the price.
Judith Ottosen | Outback Realty LLC
Email MeJohn, I think you will struggle to find anyone. Let’s hope I’m wrong.
Judith Ottosen | Outback Realty LLC
Email MeEverywhere you go in Florida there is both commercial and residential construction taking place. It’s very exciting times. The day before yesterday I had a rental property open and had 30 odd groups through. Can’t get enough properties in some areas. One couple told me they have been trying for 6 1/2 months to get something decent
Judith Ottosen | Outback Realty LLC
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